CSCP practice questions 201–210

1. Question 201 · 505 in bank

   A practical way to eliminate an unprofitable customer is to:

   • Aestablish a tiered pricing structure based on service levels and refuse to discount premier service
   • Bincrease product price by 30% to 50% within 3 to 6 months of the customer's initial order
   • Cask the customer to order products in much higher quantities than they typically do
   • Dgradually reduce the quality of customer service

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   Answer: A

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2. Question 202 · 505 in bank

   Total annual profit typically is highest at what stage of the product life cycle?

   • AGrowth
   • BMaturity
   • CDecline
   • DIntroduction

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   Answer: B

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3. Question 203 · 505 in bank

   A supplier is offering a price discount if more is ordered at one time. The offer should be analyzed to determine if a larger order is appropriate considering:

   • Athe impact of the increase in average inventory levels on ABC designations
   • Bthe reduction in material cost compared to the impact on total holding costs
   • Cthe impact of additional items on indirect costs
   • Dthe increase in transportation costs compared to the reduction in ordering cost

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   Answer: B

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4. Question 204 · 505 in bank

   A company recently announced a recall of imported lead-tainted toys sold through a network of retailers. The recall is related to which of the following attributes of an agile supply chain?

   • AVisibility
   • BVariability
   • CValue
   • DVelocity

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   Answer: A

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5. Question 205 · 505 in bank

   Producing finished goods in a manufacturing environment has which of the following financial impacts?

   • AConversion of assets to overhead costs
   • BConversion of overhead costs to assets
   • CConversion of overhead costs to liabilities
   • DConversion of assets to equity

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   Answer: B

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6. Question 206 · 505 in bank

   Which of the following arguments are made against traditional accounting methods for logistics expenses to an organization?

   • AThey are more difficult to accumulate
   • BThey overstate the costs of logistics
   • CThey obscure important costs
   • DThey incorrectly state the timing of logistics costs

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   Answer: C

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7. Question 207 · 505 in bank

   Which of the following actions is most likely to lead to successful implementation of sales and operations planning (S&OP)?

   • AAutomating data sharing between the sales and operations departments
   • BAdjusting the forecast to match the budget forecast
   • CExecuting the process every month
   • DFocusing solely on the short term planning horizon

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   Answer: C

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8. Question 208 · 505 in bank

   A company currently produces a major component and is considering purchasing the component from a foreign supplier. Assuming they were to purchase from the foreign supplier, which of the following would most likely impact the domestic manufacturing operations?

   • ADirect cost of the component
   • BSupplier lead time fluctuations
   • CAccuracy of supplier forecasting
   • DTransportation cost from the supplier

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   Answer: B

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9. Question 209 · 505 in bank

   Which of the following actions most accurately describe the enforcement for violations of the Global Reporting Initiative (GRI) sustainable reporting guidelines?

   • AContributors to the guideline access and collect fines for violations of the guidelines
   • BContributors to the guideline report violations in country officials for prosecution
   • CThe guidelines are advisory and detail fines for violations but lack any enforcement language
   • DThe guidelines are advisory and act as a standard of good sustainable practice

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   Answer: D

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10. Question 210 · 505 in bank

    In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?

    • AObsolete inventory location
    • BSubstitute producer
    • CBuffer from a customer demand
    • DSource of supply

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    Answer: C

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CSCP practice, question 201. 505 questions available.